The Central Board of Excise and Customs (CBEC) will be reorganised for the implementation of the Goods and Services Tax (GST) system and renamed the Central Board of Indirect Taxes and Customs (CBIC) following parliamentary approval.
"Reorganisation of the field formations of CBEC for the GST implementation has been approved by Finance Minister Arun Jaitley. The existing formations of Central Excise and Service Tax under the CBEC have been reorganised to implement and enforce the provisions of the proposed GST laws," a Finance Ministry statement said on Saturday.
"The CBEC is being renamed as the Central Board of Indirect Taxes and Customs (CBIC), after getting legislative approval. The proposed CBIC shall, inter alia, supervise the work of all its field formations and directorates and assist the government in policy making in relation to the GST, continuing central excise levy and customs functions," the statement said.
The CBIC will administer both the GST as well as excise as few products like petrol and diesel will attract excise duty.
It will have 21 zones, 101 GST taxpayer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3,969 ranges, 49 audit commissionerates and 50 appeals commissionerates, it added.
"This will ensure rendering of taxpayer services to all the taxpayers through an indirect tax administration structure, having pan-India presence," the statement said.
"For a robust IT network, the Directorate General of Systems under the CBEC is being strengthened. The directorate general taxpayer services is being expanded for greater outreach for facilitating smooth transition for the taxpayers to the GST environment," it added.
The existing training establishment will be renamed as the National Academy of Customs, Indirect Taxes and Narcotics and will have an all-India presence, to enable capacity building to the employees of the indirect tax administration of the Centre as well as of the state governments and to members of trade and industry.
"The renamed Directorate General of Goods and Service Tax Intelligence is also being strengthened and expanded to become an important wing of the government in its fight against tax evasion and black money," the statement said.
"The reorganisation of the CBEC into CBIT signifies that the government is setting the house in order for the approaching GST system and now it's the turn of trade and industry to gear up," analyst Pritam Mahure told IANS.
It was inevitable as all the factories of a taxpayer in one state, which are separately registered for excise, will be registered under one GST registration number, he said.
In the days to come, state governments may also follow this step by reorganising state Value Added Tax departments as luxury tax, entry taxes, etc. will be subsumed in GST, Mahure said.